Generative AI Sparks Demand Surge, Forecasts Capgemini Research

Bengaluru, 22 November: According to the latest report from Capgemini Research Institute titled 'The Art of Software: the new route to value creation across industries,' a significant uptick in revenue contribution from software-driven services is expected to reach 29 per cent for organizations by 2030, up from a mere 7 per cent in 2022. This growth is attributed to a burgeoning demand for such services, largely propelled by the emergence of generative AI tools.

The report highlights a trans formative trend cutting across all industries. Organizations are reshaping their identities, transitioning away from traditional hardware-centric business models and increasingly embracing software-focused strategies. This shift is anticipated to fuel a higher demand for service offerings rooted in software.

Industries are experiencing rapid innovation and research & development (R&D) driven by software and software-enabled technologies such as cloud computing, Internet of Things (IoT), high-performance networks (including 5G), and AI/ML. These technologies are reshaping customer experiences, introducing novel revenue streams and business models, and optimizing operational costs.

The rise of generative AI has particularly catalyzed this trend. As the demand for interconnected and intelligent products and services grows, organizations are turning to generative AI tools to support engineers throughout the software development lifecycle. This adoption is forecast to significantly expedite software code delivery, potentially saving up to 43 per cent of time for software engineering over the next three years.

The report indicates a strong inclination towards integrating generative AI into existing software engineering practices. Approximately 70 per cent of organizations plan to utilize generative AI to enhance their software engineering efforts within the next year, foreseeing these tools contributing to 37 per cent of code creation within the following three years. Surprisingly, only 28 per cent of surveyed organizations expressed no intention of leveraging generative AI for software engineering in the upcoming year.

William Rozé, CEO of Capgemini Engineering and Member of Capgemini’s Group Executive Board, emphasized a fundamental shift in business mindset. He stressed the imperative for organizations to view software as a strategic asset rather than a mere add-on or corrective tool. This shift in perspective is pivotal for unlocking the diverse benefits of software-driven approaches and establishing competitive differentiation."